Historical Mortgage Rates Chart (2013-2024) & What It Means for Homebuyers

Over the past decade, U.S. mortgage rates have gone through major shifts.

In 2013, most outstanding mortgages had interest rates above 4%. By 2020 and 2021, record-low interest rates encouraged refinancing and new purchases, causing the share of mortgages with rates below 3% to surge to 33.3%. This trend reversed sharply after the Federal Reserve began raising rates in 2022. As of Q3 2024, the portion of mortgages with rates above 6% has climbed from just 3.7% in Q1 2022 to 18.4%, making homeownership significantly more expensive for new buyers.

One of the biggest challenges facing the housing market is the growing gap between new mortgage rates and outstanding mortgage rates. In Q1 2013, the average 30-year fixed rate was 3.5%, while the average rate on outstanding mortgages was 5.1%. By Q3 2024, the average 30-year fixed rate is 6.51%, while the average rate on outstanding mortgages is just 4.2%. This is the largest gap in over a decade, which discourages homeowners from selling and taking on a new, higher-rate mortgage.

With most existing homeowners paying much lower interest rates than what’s available today, there is little incentive to move unless absolutely necessary. This has kept housing inventory low, limiting options for buyers and keeping home prices high. Unless mortgage rates decline meaningfully, many homeowners will likely remain in place, continuing this cycle of low housing supply.

While the lock-in effect has kept many homeowners from selling, a sharp rise in delistings suggests the housing market may be softening. Nearly 73,000 homes were pulled from the market in December 2024, a 64% increase from the prior year, as sellers failed to get the offers they expected. This trend signals that demand remains weak despite increased inventory, and it could indicate a growing “shadow inventory” of homes waiting to be relisted. If buyers remain hesitant, home prices may come under pressure in the coming months, even as more sellers return to the market.

Mortgage rates will likely remain well above 2020’s record lows for the foreseeable future. However, relief may come in 2025 if inflation slows and economic conditions improve. If you’re planning to buy or refinance, keeping an eye on Federal Reserve policies and economic trends will be key. Stay informed and compare mortgage offers to get the best possible deal.